Anand Rathi Files Draft Papers For IPO Of Rs 745 Crore

Anand Rathi Share & Stock Brokers Ltd. has filed its draft red herring prospectus for its initial public offering of Rs 745 crore, which is entirely a fresh issue.

The company proposes to utilise Rs 550 crore of the net proceeds towards funding long-term working capital requirements and the remaining for general corporate purposes, its DRHP said.

The company's total working capital as on March 31, stood at Rs 1,220.63 crore and it estimates working capital requirements at the end of March 2025 to be at Rs 1,612.57 crore and in 2026 at Rs 2,642.07 crore.

Book running lead managers for the issue are Nuvama Wealth Management, DAM Capital Advisors, Anand Rathi Advisors, and Link Intime India Private.

The company is an established full-service brokerage house in India with over 30 years of experience. It provides broking services, margin trading facility and distribution of financial products under the brand ‘Anand Rathi’ to a diverse set of clients across retail, high net worth individuals, ultra-high net worth individuals and institutions.

On the industry, the DRHP said, key trends shaping the future of stockbroking include AI-powered tools like algorithmic trading, robo-advisors, chatbots, and virtual assistants. "These innovations will personalize investment recommendations and improve user experience, fostering stronger client relationships," it said. "India has considerable potential for growth in the broking industry, as only 4-5% of India's population actively participating in stock trading, compared to significantly higher rates in countries like the United States (55%), the United Kingdom (33%), and China (13%)."

In April-September of current year, the company made a profit of Rs 63.66 crore and Rs 77.3 crore was its profit in the last financial year. Revenue from operations for April-September was Rs 441.72 crore and in the last fiscal it was at Rs 681.79.